Geothermal Tax Credits for Ord Residents

Looking for major savings on the installation of that geothermal heating and cooling system you’ve always longed for? Well, this could be your chance!

The Bipartisan Budget Act of 2018, approved in February 2018, reinstates the Residential Energy Efficient Property Credit for fuel cells, small wind systems … and geothermal heat pumps. Relative to the latter:

  • This credit applies from now through December 31, 2021.
  • It rebates 30% of approved expenditures for systems placed in service between now and December 31, 2019.
  • A progressive step-down in credit value is set up for each year following, so if you want the total 30% credit, you’ll have to take action quickly.
  • Retrofit systems are regarded as “placed in service” when they’re totally installed and ready for use.
  • Systems for newly built or newly renovated homes are considered “placed in service” at the time you, the homeowner, first settle into the home.
  • It’s not required that this home be your chief residence.
  • Your geothermal heat pump must fulfill all federal ENERGY STAR specifications.
  • To receive the Residential Energy Efficient Property Credit, you’ll have to finish and file IRS Form 5695.

For further information, review our blog as well as this WaterFurnace®-created flier, Understanding the Federal Incentives for Geothermal Heat Pumps.

Even though we at Wadas Inc. would be thrilled to see you get a geothermal heating and cooling system for your Ord home, we cannot legally support any financial strategy for doing so. We can, however, recommend that you talk with a nearby tax professional. He or she can advise you on how best to take advantage of geothermal tax credits considering your singular financial situation.

If you want to find out more about what other energy-related tax incentives might be applicable to you at the federal, state, and local levels, visit dsireusa.org. This is a one-of-a-kind resource that has state-by-state facts on literally thousands of policies and incentives encouraging  renewable energy and energy efficiency.

And keep in mind: When you finally decide to install a geothermal heating and cooling system in your home, depend on the Ord geothermal experts at Wadas Inc.. We’ll get the job done right – to help you start saving both energy and money right from the start.